Compressed Natural Gas (CNG), is formed by pressurization of natural gas and stored in a container in the gaseous state. CNG is an ideal alternative energy source for vehicles, and its application technology has become increasingly mature after scores of years of development. It has the characteristics of low cost, high benefit, no pollution, safe and convenient use, and is increasingly showing strong development potential. In recent years, with the opening of imported natural gas channels in China, the basic construction of national backbone pipe network and the gradual improvement of regional pipe network, urban CNG gas filling stations have been rapidly developed with their good environment, social and economic benefits.

　　Relevant report: Beijing Puhua Policy Information Consulting Co., Ltd. Special Investigation and Investment Prospect Prediction Report of Compressed Natural Gas (CNG) Industry in 2020-2026

　　　2. Main Application Advantages of CNG

　Under the premise of certain gas transmission scale, onshore pipeline transportation is the most economical and effective transportation mode of natural gas, but due to the limited supply range, it can only supply gas to cities along the long-distance trunk line. At present, the penetration rate of natural gas in counties and villages away from cities in China is still relatively low, mainly due to the small scale of gas supply in counties and villages, which achieves good investment return in effective time.

　　At the same time, with the increase of gas consumption in our nation, gas source tension occurs from time to time, especially in the winter of northern China, in order to solve the seasonal imbalance in the use of urban natural gas, CNG reserve stations have a certain reserve peak regulation effect.

　3. Main application areas of CNG

　　CNG gas supply technology has been more mature in China, and has played a great role in gas supply in small and medium-sized towns as well as vehicle gas.

　　(1) Automobile Fuel

　　After many years of rapid development, the domestic CNG automotive industry has basically formed an industrialized development pattern integrating whole vehicle equipment, vehicle modification, gas station construction, equipment manufacturing, technical standard formulation and new product research and development. It has a relatively perfect policy, laws and regulations, operation management, gas source guarantee and price regulation system for the popularization and application of natural gas automobiles, and has formed a CNG automobile development model with its own characteristics in different regions.

　　In the development of new energy automobiles, CNG automobiles have obvious advantages. The main component of natural gas is methane, which has high octane value and calorific value, it has stable properties and relatively complete combustion, and better emission performance compared with gasoline and diesel. Therefore, the natural gas vehicle with its excellent combustion and emission characteristics has been accepted by the market and users. At the same time, natural gas price has a greater advantage over fuel price, which is one of the reasons why CNG vehicles can develop rapidly.

　　(2) City Gas

　　The gas supply system of CNG small and medium-sized cities is mainly consisted of compressed natural gas filling primary station, CNG gas cylinder car, CNG storage and pressure regulation station, and urban transmission and distribution pipe network.

　　Due to its simple technologies, short construction cycle, less investment and low operating cost, CNG gas supply has high application value for urban or county rural residents who use gas with little gas volume or small and medium-sized industrial users in the surrounding areas of large cities close to the gas source or reached by long-distance transmission pipelines.

　　4. Development Status of CNG Industry in Our Country

　　The scale of China's natural gas automotive industry has been greatly improved with the strong support of the state, and the entire natural gas automotive industry system has been basically formed. Established in 1986, the World Natural Gas Automobile Association (IANGV) is a world-renowned natural gas automobile association, and its statistics show that as of 2017, more than 26.16 million natural gas automobiles and more than 31,000 gas filling stations have been preserved in 87 countries and regions worldwide.

　　From the current point of view, due to the tension of gas sources and the influence of pipe network, CNG vehicles and heating stations in our nation are mainly concentrated near the gas source areas, such as Xinjiang, Sichuan, Chongqing, Shaanxi, and Gansu. Convenient natural gas supply and low gas price are the main driving forces for the rapid development of CNG vehicles.

　　(1) Blue Sky Protection Campaign Boosts the Development of CNG Industry

　　At present, the exhaust emission of oil vehicles has become the main source of urban air pollution. As an important form of CNG application, CNG automobiles vigorously promote the development of CNG industry. It is an important way to effectively reduce automobile exhaust pollution to replace gasoline and diesel oil with natural gas as a new fuel for automobiles. The emission of CNG vehicles is about 85% lower than that of gasoline vehicles and diesel vehicles, among which carbon oxygen is reduced by about 97%, hydrocarbon is reduced by 70% ~ 80%, nitrogen oxides are reduced by 30% ~ 40%, particulate suspended matter is reduced by 40%, and noise is reduced by about 40%, and CNG vehicles do not produce harmful toxic substances such as sulfur, lead, and benzene.

　　At present, our nation is in the process of industrialization, the pressure of air pollution prevention and control and environmental protection is more obvious, the development of low-pollution CNG vehicles in China is not only an urgent need for improving the urban air quality and people’s living conditions, but also the need for developing the low-carbon economy, protecting the ecological environment, and pursuing the sustainable development, which is also an important means to win the Blue Sky Protection Campaign in China.

　　(2) The oil and gas price difference will be maintained for a long time, and CNG will promote the great development of natural gas automobiles

　　At present, there is a certain price difference between the price of natural gas and the price of gasoline in China, and there exists an economic basis and driving force in the development of CNG vehicles. The natural gas consumption of CNG vehicles is 25% lower than the fuel consumption of gasoline vehicles. In the case of taxis 400 km per day, it is preliminarily calculated that taxis using natural gas as fuel will save about 40% of fuel costs compared with taxis using gasoline as fuel, which shows considerable economic benefits. In order to save the cost of operation and maintenance, CNG car preservation will have further room for improvement, and promote the great development of the entire clean automobile industry in China.

　　(3) Technical innovation strength is strengthened, and the R & D system for key technologies of CNG automobiles will be more sound and perfect.

　　The technological innovation system of CNG automotive industry in China has been basically completed. The research and development of CNG automobiles involves many technical fields such as energy, materials, physics, chemistry, machinery, electricity, automatic control, and environmental protection. In the past 20 years of development, China has invested a lot of funds to support scientific research institutes, colleges and universities, and large automobile manufacturers to jointly participate in the research and development of key technologies of CNG automobiles, established relatively perfect development and experimental means, trained a talent team for the development of new energy automobiles with a more reasonable knowledge structure, and basically built an innovative support platform containing technical standards, detection and evaluation, industrialization bases, demonstration assessment, intellectual property services, and information databases, which lays a good foundation for the development of CNG automotive industry.

　　The research and development of key technologies of CNG automobiles in China and the promotion of achievements have achieved remarkable results. In recent years, some backbone automobile enterprises (FAW, Dongfeng, Chang’an Automobile, Chery, etc.) in China have successively developed single-fuel or dual-fuel CNG automobile engines and have possessed the batch production capacity.

　　The complete set of equipment of domestic high-performance natural gas filling stations in China not only completely replaces imported products, and there are batch exports; the technical level and industrialization ability of key components of CNG automobiles are also significantly improved. They not only meet the needs of the domestic market, but are also exported to some countries and regions in Southeast Asia.